USA Waste of California, Inc. - 1st Amendment-1998-09 FIRST AMENDMENT TO FRANCHISE AGREEMENT
BETWEEN
THE CITY OF GRAND TERRACE
AND
USA WASTE OF CALIFORNIA, INC.
FOR THE PROVISION OF
INTEGRATED WASTE MANAGEMENT SERVICES
This First Amendment to the Franchise Agreement for Integrated Waste Management
Services ("Amendment") is made and entered into this 1st day of April, 2002, by and
between the CITY OF GRAND TERRACE ("City") and Waste Management of the
Inland Empire,A division of USA Waste of California, Inc., a Delaware Corporation
("Contractor") for Integrated Waste Management Services, including collection,
transportation,recycling, composting, and disposal of solid waste, recyclable solid waste,
and construction debris and for providing temporary bin/roll off services for all
commercial and industrial and residential premises within the City of Grand Terrace.
RECITALS
A. WHEREAS, the City and the Contractor entered into a Franchise Agreement for
the Integrated Waste Management Services dated March 12, 1998 ("Franchise
Agreement"), a copy of which is attached hereto as Exhibit"1'; and
B. WHEREAS, the City and the Contractor have mutually agreed to modify the
terms and conditions of the Franchise Agreement as set forth below in order to
improve service levels, comply with comprehensive service, adjust residential rate
categories and standardize commercial rates:
NOW, THEREFORE, the parties agree to amend the Agreement as follows:
Section 2. DEFINITIONS.
Two definitions are revised as follows:
Q. Multi-Family Premises—means residential units such as apartments,
condominiums and townhouses, other than Single Family dwellings, having four
or more units, which utilize Multi-Family Bins, as defined in this Agreement, and
not cans or carts, for the temporary accumulation and collection of Residential
Solid Waste. "Multi-Family Units" are covered by this Agreement.
X. Residential Premises or Single Family Dwelling or Single Family Unit—
Generally means a detached building, or each unit of multi-family dwelling, with
kitchen facilities, which utilizes one or more carts or cans, but not Multi-family
Bin, for the temporary accumulation and collection of Residential Solid Waste.
Amendment 1 Grand Terrace 04 03 02 1
For purposes of this definition, mobile home complexes may elect to receive
either Multi-family Bin collection Services or Single Family Premises Collection
Services by mutual consent of the Contractor and the Customer.
Section 5. SERVICES PROVIDED BY CONTRACTOR
C. Additional Services
The following subsection of Section 5 C. is changed to include 3-cubic yard containers:
(8) Containers for Use of City Public Works Department. Upon
request Contractor agrees to provide 3 cubic yard or 30 cubic yard containers to the City
for use in public land cleanups and local maintenance at not additional cost to the City as
agreed. These Containers will be serviced on an as-needed basis, and care will be
exercised to minimize disposal costs and maximize recycling. To that end, separate
container(s)will be dedicated to the collection of green waste, and every effort will be
made to divert this material from disposal.
The following four sections are added to Section 5 C. Additional Services:
(11) Special Event_Provisions. Contractor agrees to provide the
following services up to four(4) times per calendar year:
• Up to ten (10)portable restroom stations
• Portable hand wash station
• Cardboard trash receptacles
• Roll-off container for waste consolidation
(12) Commercial Recycling Notification Pra am.
Contractor agrees to annually notify all business customers within
the City of Grand Terrace, of opportunities relating to recycling
and diversion practices available. Initially this will be a mailer,but
may be modified by mutual agreement between the City and the
Contractor.
(13) Cam oster Subsidy Pro am. Contractor agrees to provide
residential premises requesting backyard composter units at a
reduced rate. Said Contractor subsidy shall be up to $20.00 per
unit,but not more than half of the unit cost. The balance of the
cost shall be billed to the residential customer via the regular
billing. This program shall be subsidized to an annual maximum
of$500.00 per year by the Contractor.
(14) Contractor agrees to collect electronic waste, including devises
containing cathode ray tubes (CRT's), even if there becomes an
increased or special cost to dispose in the future. Any increased
cost of disposal or cost to recycle these devises shall be reimbursed
to the Contractor at the time of the annual review and adjustment
Amendment t Grand Terrace 04.;03;`0? 2
of the"landfill Charge"of the Residential Rate as outlined on the
attached Exhibit"D" (July I", annually).
Section 8. FRANCHISE TERM.
The following shall replace the existing 10-year FRANCHISE TERM language:
A. The tern of this Agreement shall be for a period of six (6) years and shall
commence on April 1, 2002 and end on May 31, 2008.
B. On April 1, 2002, and on April I"of each subsequent year, the term of this
Agreement shall be automatically extended for an additional year
("automatic renewal") so that the term of the Agreement shall remain at a
minimum of six (6) years. Should either party wish to terminate the
"automatic renewal", such party shall give the other party written notice to
that effect at least thirty(30) days prior to April V% of any year. Such
notice shall terminate the"automatic renewal"provisions and the
Agreement shall remain in effect only for the six- (6) year balance term.
Section 19. COMPENSATION.
Subsection"E"is replaced as follows:
E. Escalation of Rates (Commercial): The attached Exhibit"F" is the
approved Rate Band for all commercial services. These rates will remain until the
July 1, 2002 annual adjustment. The"High" end of this Band shall be established
as the "Standardized Rate" for such level of service. All commercial customers
currently being charged the high end of this Rate Band shall not be subject to any
rate adjustment due to the annual change in the Consumer Price Index (CPI) for
three years (from July 1, 2002 to June 30, 2005). This Standardized Rate shall not
be adjusted by either party, for this time period. All rates will continue to be
adjusted for changes in the landfill component of the rate as well as
"Extraordinary Adjustments in Rates"as defined in Exhibit"D", Section 5 of the
Agreement.
Any new commercial customer or any existing commercial customer requesting
new service or a change in service level shall be billed the Standardized Rate.
Existing commercial customers currently not being charged the "Standardized
Rate", or a customer not attaining the Standardized Rate by July 1, 2005, shall for
the period of time up to July 1, 2005, have the monthly rates adjusted annually as
outlined in the Franchise Agreement Exhibit"D"4. "Annual Adjustments of
Rates",plus the following:
In addition to the annual adjustment in the Consumer Price Index (CPI), the
Contractor's Pick up fee portion of the commercial rate shall be adjusted an
Amendment 1 Grand Terrace 04:01'02 3
additional 3% (CPI plus 3%) for a three (3) year period up to July 1, 2005. Any
existing commercial customer rate that attains the level of the"Standardized
Rate" for the level of service during this three year period, shall not be adjusted
beyond this rate until July 1, 2005. Any commercial customer not yet at the
Standardized Rate on June 30, 2005,will on July 1, 2005 be adjusted to the full
amount of the Standardized Rate. The annual rate adjustment based on the
change in the Consumer Price Index as outlined in Exhibit"D"(revised herein)of
the Franchise Agreement shall equally effect the entire customer base on July 1,
2005. Any commercial customer not at the Standardized Rate as of July 1, 2002,
shall at that time, receive a rate adjustment which includes the CPI for July 1,
2001, the CPI for July 1, 2002, and the 3% adjustment, unless the Standardized
Rate has been achieved.
The attached Exhibit"F""low end"of the rate band, shall be revised when the
March 2002 CPI data is available, and will include the CPI adjustment for July 1,
2001, the CPI adjustment for July 1,2002, and a 3% adjustment factor. Said
Revised Exhibit'F"shall be submitted to the City Manager for review prior to
implementation.
Said commercial rate adjustments shall be reviewed and approved annually by the
City Manager or his/her designated representative.
SECTION 19. L.
The following shall be added as subsection"L" of this Section of the Agreement:
Contractor agrees to freeze the existing Single Family Residential Rates and
associated ancillary fees from any adjustment relating to the annual Consumer
Price Index (CPI), until July 1, 2003. In addition, all other rates listed within
Exhibits"D" and"E"(except those noted above in Subsection"E", associated
with the commercial rate escalation) shall not be adjusted until the July 1, 2003
date and shall then only be adjusted based upon the twelve-month period of CPI
review.
SECTION 21. PUBLIC ACCESS TO CONTRACTOR
The following shall be added as subsection"C"of this Section of the Agreement"
C. Contractor shall provide a local office for response to all customer
inquiries. "Local"shall be defined as an office within Western San
Bernardino or Western Riverside Counties of the State of California.
Amendment 1 Grand Terrace 04103102 4
EXHIBIT "D" (Revised and Effective April 1 2002
SCHEDULE OF RATES
1. SINGLE FAMILY RESIDENTIAL SERVICE RATE
Single family service rates shall be based on the following formula.
FORMULA: Contractor's pick-up fee + Street Sweeping/Community Fund + Landfill
Fee (Based upon average tons per home) + Green Waste Charge +
Recycling Charge+Household Hazardous Waste Fee+Franchise Fee
The Franchise Fee Calculation will be 15% of the Contractors pick-up Charge + Landfill
Fee+ Green Waste Charge+Recycling Charge
Single Family Monthly Residential Rates through June 30, 2003 will be as follows, and
thereafter shall be adjusted as outlined in the Agreement:
64 Gallon Container: $18.01 based on the following:
Contractors Pick-up Fee $10.00
Street Sweeping/ Community Fund $ 0.85
Landfill Charge $ 1.78
(Based upon 0.723 tons per home per year at $29.52 per ton)
Green Waste Charge $.99
Recycling Charge $1.87
Franchise Fee $2.32 (15%of Gross)
Household Hazardous Waste Fee $.20
96 Gallon Container: $19.01 per month based on the following:
Contractors Pick-up Fee $10.00
Street Sweeping/Community Fund $ 0.85
Landfill Charge $2.65
(Based upon 1.075 tons per home per year at$29.52 per ton)
Green Waste Charge $.99
Recycling Charge $1.87
Franchise Fee $2.45 (15%of Gross)
Household Hazardous Waste Fee $ .20
Amendment 1 Grand Terrace 04'03 02 5
2. MULTI-FAMILY SERVICE RATE:
Bin service rates for multi-family units shall be the same as adopted for
commercial bin service.
3. ADDITIONAL SPECIAL SERVICE RATES.
A. "On Demand" appliance and bulky item pickup at ground level for Multi-family
Premises, Commercial Premises, or additional collections at Single-Family
Premises beyond the three-free requests per year - first item $25.00 and $15.00
for each additional item.
B. All persons qualifying as handicapped by the City shall be entitled to free
carryout service to the collection vehicle. The operator may charge for such
carryout service for any other customer who requests it at the rate of$12.00 per
month.
C. Special enclosure cleanup service as described above, shall be charged at the rate
of $45.00 per hour, portal to portal. Special cleanup service by pickup truck
requested by any customer shall be charged at $45.00 per hour plus any applicable
landfill fees. If a compactor refuse truck is necessary, the charge shall be $45.00
per hour plus any applicable landfill fees.
D. Individuals shall be entitled to a reasonable discount of the operator's service
pickup fee in accordance with the Ordinance. Contractor may, at its discretion,
offer low-income customers the same discount offered by Southern California
Edison.
E. Exemption from mandatory service shall be in accordance with the Ordinance.
Contractor may, at its discretion, credit the landfill component of the monthly bill
for customers who are on vacation for at least 30 consecutive days. Contractor
may, at its discretion, charge no monthly rate for a home that is uninhabited and
receives no service. Contractor may require property owners to sign a "Vacancy
Certificate" at least every six months. If Contractor's field audit discovers that a
house certified to be vacant, is inhabited, Contractor may retroactively charge the
property owner to the date of the Vacancy Certificate.
F. A "Service Change" fee in the amount of$20.00 may be charged each time a
customer changes to a different service level. The operator will select one
calendar month per year, during which month, "Service Change" fees will be
waived for any customer requesting a change in their service level. Customers
will be notified by operator regarding the availability of this change option.
Amendment 1 Grand Terrace 04.'03'0? 6
4. ANNUAL ADJUSTMENT OF RATES.
As of July I`of each year, the above refuse rates shall be adjusted as follows:
A. The landfill fee portion of each rate designated above shall be adjusted in
accordance with an increase or decrease percentage to correspond with any
increase or decrease percentage in the landfill fee charged by the County of San
Bernardino.
B. The contractor's pickup fee and the Street Sweeping/Community Fund fee
designated above shall be adjusted by 90% of the annual change in successive
indexes as of the month of March, per the "Consumer Price Index, Los Angeles-
Anaheim (unadjusted), All Urban Consumers, All Items" as published by the
Bureau of Labor Statistics.
5. EXTRAORDINARY ADJUSTMENT OF RATES.
Subject to the approval of City Council, the Contractor may request special rate
adjustments in the event its operating conditions significantly change, i.e., the
County of San Bernardino or the City directs the operator to a different landfill,
there is a change in State or Federal laws applicable to the operators refuse
business, or there is a significant change in the County's collection of tipping fees
and fees to operate the Household Hazardous Waste program.
6. SCHEDULE OF FRANCHISE FEES.
As of April 1, 2002 Contractor shall pay a Franchise Fee of 15% of gross
revenues, minus the Household Hazardous Waste fee.
7. NON-PAYMENT.
Contractor reserves the right to stop service after the customer is 60 days late or
longer. Contractor will then have the option to confiscate the container.
Reinstatement of the account along with delivery of the container will be$20.00.
All other provisions of the Agreement with Exhibits shall remain in full force and effect
and shall apply as applicable to this Amendment.
Amendment 1 Grand Terrace 04 03.'02 7
PASSED,APPROVED, AND ADOPTED this 28rh day of March, 2002
CITY OF GRAND TERRACE USA WASTE OF CALIFORNIA, INC.
By: By:
Mayor and to the City Council thereof District Manager
ATTEST:
By:vle'42& ���L icz/
City Clerk tl
By: �')dm 96��'
City Attorney
Amendment L Grand Terrace 04/03102 8
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EXHIBIT"F"
CITY OF
GRAND TERRACE
MONTHLY COMMERCIAL BIN COLLECTION RATES
BIN SIZE- 2 CUBIC YARD 3 CUBIC YARD 4 CUBIC YARD 6 CUBIC YARD 3 CUBIC YARD
RATE BAND RATE BAND RATE BAND RATE BAND TEMPORARY
CONSTRUCTION
NUMBER OF
COLLECTIONS
PER WEEK
1 42.07-73.86 68.90-98.12 125.28- 129 74 151.68- 187.42 52.19
2 70.73- 134.05 124.62- 182.95 237.10-246.04 287.60-361.17 104.39
3 112.80-207.91 193.37-281 13 362 49-375 89 441.91 -549.11 156.58
4 154.86-281.77 262.38-379 04 487.87-505 74 593 60-736.01 208.78
5 196 93-355 10 226.29-477 48 612.99-635 59 745.28-923.42 260.97
6 238.99-429.22 400.13-575.39 738.11 -764 38 897.49- 1,110 84 --
Note: Bin rental charge is eliminated on multiple collections per week.
Includes 15%City Franchise Fee
City of Grand Terrace-Adopted Exclusive Solid Waste Franchise Agreement-USA Waste of California, Inc.